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Guy Hands, the founder of Terra Firma Capital Partners, wants buyout firms to drop the classic “two and 20” fee model under which fund managers charge a 2% fee on all money allocated to private equity funds and an additional 20% fee on carried interest, according to the Financial Times. “No industry likes changing, particularly when it means lowering fees and profitability,” Mr. Hands said. “But I think, longer term, the industry has to change or it will price itself out of the market.”